So Arafat is not allowed to run in the upcomming elections?I doubt it would go quite that far and personally I think it would be a mistake. Arafat at least says the right things and often even does them. Though he's probably an impediment to true peace, so is Sharon. It may be premature to force him out because Hamas may sneak into the breach. The suicide bombings are coming primarily from Hamas (which has no interest whatsoever in peace), and the best way to keep them in check right now is Arafat.
The call for a freeze on squatter activity was actually more important than the call for the military pullback, as no real peace is possible as long as it continues. It also places some onus on Israel and forces Sharon et al to confront that particular lobby.
Indeed, the biggest roadblocks to a real solution will be Hamas and the squatter lobby.